Zerodha - Number One Discount Broker in India

[Zerodha]

Hi Zerodha,
http://www.zerodha.com/z-connect/blog/view/margins-2-exit-orders-for-1-position
can you explain how this works in case of cover orders?
regards
M Prakash

In case of cover orders this doesn't come into play.. Since the only way to exit a cover order is by exiting your stop loss, you can place a fresh exit order as CO...

 

[Zerodha]

according to the article, currently the min stamp duty is levied by maharashtra i.e. 0.0001% and 0.005% by other states! this is going to be changed to uniform one i.e. 0.003% if passed in winter session of parliament!

now my question is v simple:

• what can't zerodha customise their calculator and incorporate these charges to be more specific, clear and transparent? though some kind of customisation is required, it won't be 35 (28 states and 7 UTs) combinations. even if that is not possible then WHY -
• they mention "Stamp Duty is charged at 0.01% or Rs. 50 per contract note - whichever is lower and
  *Stamp duty is charged according to the Karnataka Stamp Duty Act and is not included in the brokerage calculator."
  but the article says that Southern states like Andhra Pradesh and Karnataka (where zerodha is based out), which do not levy stamp duty, might gain in the new system. SO IT LOOKS A BIG CONFUSION as according to zerodha calculator stamp duty is 0.01% what is this whole mystery of stamp duty and x% charged by zerodha?:annoyed:

and the most imp point is even if everything is correct at zerodha's end, then consider this example where you BUY 1 Nifty contract @6000. the stamp duty for this would be Rs. 30. OMG! This is 1.5 times more than the brokerage of Rs.20 which i am paying to zerodha! Simply this means that Zerodha's claim of cheap brokerage house is wrong. infact the retail guys are the biggest losers if they trade with zerodha as they are paying more stamp duty than brokerage!

Same applies to option contracts too where the Stamp Duty is calculated on turnover of option contract which in this case would be again more than Rs. 30 (if i consider ATM option trade of Nifty). ur giving more than the brokerage as stamp duty. it kills a retail trader on the contrary who joins these brokerages to minimise cost!

Xsis,

Firstly this journalist has done a bullshit job with this article, has't put enough research.

Stamp duty for Maharashtra and Guj is 0.002% for f&O and 0.01%(10,000/crore) for delivery and not 0.0001%(Rs10/crore)

Coming back to Karnataka and AP, the rates are 0.01% with a max cap of 50 and for AP 0.005% with a cap of 50.. again what the journo has written is not correct, this can be verified with the respective state govts...

Coming back to us, we are launching our new website finally after 3.5 years hopefully this Diwali. The new calculator will have an option to choose your state and the stamp duty will show up..

When trading futures, if you are paying as per Karnataka Stamp duty, if you do 1 lot at 6000, which is 3lks turnover buy and 3lks sell = 6lks turnover.. You will pay Rs 50 with karnataka and Rs 12 if you are paying as per Mumbai. But what you need to understand is that stamp duty for the contract note will not go above in case of Karnataka how much ever you trade on that particular day above Rs 50. In case of Mumbai, if you buy and sell 10 lots, you would have paid Rs 120 as Stamp whereas it would be 50 in case of karnataka..

In options this hardly matters, as stamp is on option premium turnover and not contract turnover. So if you consider an option of Nifty which is at Rs 100, the buy and sell turnover is Rs 10000 on which the stamp duty would be Rs 1 and not Rs 30 as you have mentioned..

 

[Zerodha]

Hi Zerodha,

Sir i want to know how much margin needed for sell a nifty call option in MIS component?
say call premium is 50rs? if it is 150rs how much margin?

We have a tool for this which tells you on the platform, check this link: http://www.zerodha.com/z-connect/blog/view/span-calculator

as and when options are OTM, the margin required to write them keeps reducing. For the 150 , I guess it will be around 23k and for 50 around 20k

If you are using MIS it will be 40% of this amount..

 

[Zerodha]

hello zerodha,
kindly see the pics attached and check.If i calculated anything wrongly pls point out.
The pictures are of span calculator of NEST TRADER and of margin files of back office

TOT,

Not able to open the images,

You have to enter using the net Qty window only, for nifty , if buy 50, if sell -50.

 

[tradetolearn]

For NSE, backoffice will still show 15% more than what is shown on terminal, as I said on terminal we reduce a bit to make sure clients who are on border line get to trade and their orders not rejected.

For MCX, I guess it will be from Wed when it will show same on both BO and Platform

i have uploaded the pics on the following link, kindly check it.

http://snk.to/f-cdujlkpz

 

[fish]

Hi Zerodha,
I'm using Trade Tiger and now I want to fully switch over to your services
One quick query-what terminal do u provide NOW,Nest,Nest Plus(what's that)?

Do you provide different terminal to trade commodity?

thanks
Lini

 

[Zerodha]

i have uploaded the pics on the following link, kindly check it.

http://snk.to/f-cdujlkpz

You are mentioning in both buy pending QTY and Net qty on SPAN calculator.

You need to mention only in Net QTY

Check this blog

http://www.zerodha.com/z-connect/blog/view/span-calculator

 

[Zerodha]

Hi Zerodha,
I'm using Trade Tiger and now I want to fully switch over to your services
One quick query-what terminal do u provide NOW,Nest,Nest Plus(what's that)?

Do you provide different terminal to trade commodity?

thanks
Lini

We presently provide NEST with a small bunch of added tools for our clients.

NEST plus is a plugin that comes on NEST, where you can do a bunch of things..

Same terminal for NSE, BSE, MCX and MCX-SX

Welcome on board..

 

[bpr]

Hi Zerodha,

For Algo trading looks like Symphony's solution is much better and robust than Omnesys.
Any plans to tie up with them give this option to consumer.
Another discount broker has tie up with both so I think you can do the same.

 

[hibhai]

posting again...
A couple of thing that Zerodha has promised since
almost a year now. Can see nothing happening on that
front.
1. Better Mobile trading platform (Tarikh pe tarikh...but
the better app is never launched). As you know the
current App keeps on crashing every 2 to 5 mins.
2. Zerodha's own demat service (I agree you said it will
take some time)
3. Facility to place SL and Target orders together so
that if one is executed the other is automatically
cancelled. As I pointed out previously if idirect can do it
there is no reason why cant you, execpt the fact that
your software may need updation. Regulation cannot be
the reason for not coming up with this because idirect
already provides this option and I am sure they are still
compliant.